Bill,a Builder,wants to Submit a Bid on a City Sewer

question 40

Multiple Choice

Bill,a builder,wants to submit a bid on a city sewer project.He computes the cost,but mistakenly omits the cost of one item.Accordingly,he submits a bid of $430,000 to the city.The next highest bid is $675,000,and the rest of the bids are even higher.The city is happy to have such a low bid,so it accepts Bill's bid and awards him the contract for the job,even though the city engineer is of the opinion the job cannot be done for less than $650,000.In this case:

• A)Bill must perform for the agreed upon price, because he has made a unilateral mistake.
• B)the city was aware of Bill's mistake. When it accepted the bid, with knowledge of Bill's mistake, the city sought to take an unconscionable advantage of Bill's error.
• C)there was a palpable unilateral mistake.
• D)Two of the above, (b) and (c).

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